PEEC updates code for compliance audits

By Kevin Brewer

The AICPA Professional Ethics Executive Committee (PEEC) has approved revisions to the AICPA Code of Professional Conduct related to compliance audits.

Compliance audits are on the rise because of pandemic relief funding and the Infrastructure Investment and Jobs Act, P.L. 117-58. PEEC took a closer look at how independence requirements are currently being applied in compliance audits and found that the requirements are overly cumbersome and are not being applied consistently.

To provide clarity and align the requirements with applicable threats, PEEC has approved two new definitions and one revised definition related to independence in compliance audits. The changes apply to members in public practice.

These revisions to the code will be effective for compliance audits beginning after June 15, 2023, with early implementation allowed.

The Professional Ethics Division has also issued Q&As related to the revisions to assist members in implementing the requirements. These Q&As can be found in Ethics Questions and Answers, section 10.

— To comment on this article or to suggest an idea for another article, contact Kevin Brewer at

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